The Singing Machine Company $MICS is trading at Price to Sales ratio of 0.28 on November 25, 2022. That’s some sweet valuation that only comes from an overlooked and unwanted penny stock.
The company’s sales over the last year are $53.1 million, while the market cap of the stock is $15 million. There’s serious value that has yet to be unlocked folks.
We have one of our favorite fundamental setups with $MICS stock where a small penny stock partners up with a nation-wide retail giant.
Singing Machine Reports Q2 Financial Results
On November 14, 2022, The Singing Machine Company announced its second quarter financial results for the three months ended September 30, 2022.
Second Quarter Highlights:
- Net sales for the quarter of $17.1 million; fiscal year-to-date revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... of $28.8 million (an increase of 23% over the same period in the prior year).
- Gross profit increased by approximately $0.6 million to $3.9 million (representing a 23% gross margin) compared to $3.3 million (or 19% gross margin) in the prior year (an overall increase of 4% compared to the prior year same period). The improvement was in part due to lower inbound logistics and transportation expenses.
- Income from Operations of approximately $0.6 million for the quarter; the Company continues to demonstrate ability to produce profitable quarters.
- Strengthened balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity. with a successful $15 million senior secured line of credit refinancing with Fifth Third Bank on October 14, 2022.
- Fully diluted EPS of $0.08 for the quarter and $0.11 for the year-to-date period.
Gary Atkinson, Singing Machine CEO, commented, “This was a very strong quarter for our Company. We are very pleased to share our results of operations, particularly in a challenging overall economic environment… We have aggressively sought to sell product into our best retail partners throughout the year, and that was a key factor for our $17 million in top line sales for the quarter which helped contribute to the 23% growth in year-to-date net sales and almost $29 million in net sales for the fiscal-year-to-date period. We’re proud of these results and our ability to continue to perform and deliver despite some of the overall headwinds facing the retail industry today.”
Singing Machine $MICS 2Q Fiscal 23 Earnings call
Singing Machine announces updates to subscription karaoke app
The Singing Machine Company announced updates to its mobile iOS and Android karaoke music subscription apps as well as its integrated WiFi streaming karaoke app on October 10, 2022. Official artist album cover art, which can be viewed inside the app, will start to be included in the collection of subscription-based karaoke music apps starting in October 2022. The most recent update gives users access to well-known and frequently iconic album cover art that has come to be associated with the original artist’s number-one hits on the charts. The newly added album art joins the karaoke catalog’s recent song additions, which now number over 70,000 songs and include new songs by AC/DC, Megan Thee Stallion, Billie Eilish, and many others. Disney original favorites including Frozen, Moana, Encanto, and the Descendants. Subscription offers to access the catalog start at $9.99 per week or $14.99 per month.
Singing Machine enters partnership with Sam’s Club
The Singing Machine Company announced on September 20, 2022 that it had introduced 3 new karaoke products into more than 550 Sams Club locations across the country and 1 new item into more than 100 Sams Club Mexico locations. The new Singing Machine Singcast Ultimate, Singing Machine Groove Mini, and Party Machine Duet Microphones will be featured in the new fall program. As the business enters the busiest holiday season, this program aims to appeal to a broad range of consumers.
Gary Atkinson, Company CEO, commented, “We appreciate the opportunity to partner with Sam’s Club for this fall season to deliver our best-in-class karaoke product offerings. This year’s marketing strategy boasts a lot of firsts, including the Singcast™ Ultimate, the first karaoke system to wirelessly cast karaoke videos from our Singing Machine App to the singer’s TV and the first to feature PitchLab™ — professionally crafted vocal harmonizing and pitch correction effects.”
Bernardo Melo, Chief Revenue Officer, added, “We have worked hard to create a strong relationship with Sam’s Club for over 20 years. This year’s assortment offers an affordable music entertainment solution to any family or aspiring singer that loves music. We hand-crafted the features and price-points to target all of the different uses from entry-level singer to portable devices to family gatherings. Especially in a year when consumers are having to choose about where they spend discretionary dollars, it was important to provide a wide range of options at different price points. Sam’s Club members demand features and high quality at affordable prices and we’re honored to meet those demands year after year.”
The Singing Machine Company $MICS Stock Technical Analysis
The Singing Machine Company $MICS is in a technical strong downtrend. The stock attempted a downtrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... breakout on November 25, 2022, but the breakout failed.